Nvidia (NVDA -1.08%) has been the flag bearer for the artificial intelligence (AI) investing revolution since shortly after OpenAI's ChatGPT launched in November 2022. However, attention on the stock has waned in recent weeks as investors focused more on the presidential election results. Cyclical stocks like financials, energy, and even tech potentially stand to benefit from policy changes likely under a Trump administration, as well as general hopes for lower tax rates and deregulation.
However, attention is likely to return to Nvidia when it reports third-quarter earnings on Wednesday, Nov. 20. The company is already getting some favorable attention from analysts ahead of the report.
Ahead of Nvidia's earnings report, Piper Sandler raised its price target on Nvidia from $140 to $175, maintaining its overweight rating on the stock and calling the stock its top large-cap pick, according to reports. That target implies a 19% gain for the stock over the next 12 months.
Like much of the market, Piper Sandler's analyst seems to be responding to reports of strong demand for its new Blackwell platform. The analyst also predicted that the total addressable market for AI accelerators will rise to $70 billion next year, and expects revenue to top the analyst consensus estimate by $1.3 billion in Q3.
Nvidia is now the most valuable company in the world at a market cap of $3.6 billion, largely because it remains the single best way to bet on the AI revolution.
The company dominates the market for data center GPUs, and while competition from peers like Intel and Advanced Micro Devices has arrived, Nvidia seems to be extending its lead with the Blackwell platform. It has several other advantages, including its CUDA software library.
High expectations are now baked into its earnings report, and the stock fell on its last report despite strong results. Investors should expect another impressive set of numbers next week. Regardless of how the stock moves, Nvidia still looks like a smart long-term bet.
免責聲明：投資有風險，本文並非投資建議，以上內容不應被視為任何金融產品的購買或出售要約、建議或邀請，作者或其他用戶的任何相關討論、評論或帖子也不應被視為此類內容。本文僅供一般參考，不考慮您的個人投資目標、財務狀況或需求。TTM對信息的準確性和完整性不承擔任何責任或保證，投資者應自行研究並在投資前尋求專業建議。